BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 552
                                                                  Page  1

          Date of Hearing:   June 28, 2000

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS 
                              Carole Migden, Chairwoman

                  SB 552 (Kelley) - As Amended:  February 22, 2000 

          Policy Committee:                              Utilities and  
          Commerce     Vote:                            9-0
                        Local Government                      9-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill authorizes county water authorities to sell  
          hydroelectric power generated by the authority to the Power  
          Exchange (PX).

           FISCAL EFFECT  

          Negligible fiscal impact.

           COMMENTS  

           Background and Purpose  . The PX (a creation of the 1996  
          electrical industry deregulation and restructuring) is a  
          non-profit, non-public entity intended to provide an open,  
          efficient and competitive auction of electrical power to meet  
          customers' electricity demands.  The PX is not specifically  
          designated as one of the entities to which water authorities can  
          sell power.  Currently, all county water authorities are  
          authorized to "provide, sell and deliver hydroelectric power to  
          the tate, any public agency, private corporation or any other  
          person or entity or combination thereof".  

          The San Diego County Water Authority (SDWA) is planning to build  
          an Emergency Storage Project (ESP), consisting of a new  
          reservoir near the unincorporated community of Olivenhain and an  
          interconnection-including a pumping plant and tunnels-to an  
          existing reservoir (Lake Hodges).  The project will produce  
          excess hydroelectric power that the SDWA wishes to sell to the  
          PX and thus help defray construction costs for the ESP. 









                                                                  SB 552
                                                                  Page  2

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916)319-2081